John McDonnell claims British business now sees Labour as 'the government in waiting'

  • Shadow Chancellor says business is now treating Labour like the “government in waiting”.
  • McDonnell says business is already making long term plans for a Labour government.
  • He says his party will save business from the coming economic “catastrophe” under Theresa May’s government.

LONDON — Shadow Chancellor John McDonnell today claimed that business leaders see Labour as “the government in waiting” and accused the Conservatives of leading Britain to a “catastrophe” in a speech on the economy on Thursday.

McDonnell said business leaders he has met in recent weeks are making long-term plans based on the assumption that Jeremy Corbyn’s Labour will form a government at the next general election.

McDonnell also attacked Philip Hammond for having “no idea what is going in the real world” as the chancellor prepares to announce the government’s Autumn budget next week.

“Let’s hope he wakes up and see what is happening to the real people,” McDonnell told a press conference in Westminster.

He described the austerity agenda initiated by former Chancellor George Osborne and continued by Hammond as based on “at best a myth, and at worst a lie.”

He added: “It would help if he [Hammond] recognised he’s not a concerned bystander, he has been a senior member of government since 2010. It’s his and that of his colleagues. theirs alone. They failed to address the failures of the economy, and have added to them.”

“The NHS now faces the worst recruitment crisis in its history… Cuts to local policing a direct threat to national security and fight to keep streets safe from terrorism… The current crisis at risk of becoming a catastrophe.

“The lesson is clear. The lessons is we cant go on like this. Austerity doesn’t just have to end — we need to start seriously investing in public services and our economy.”

In his speech, McDonnell called on the government to announce an “emergency budget” and said Chancellor Hammond should make the following commitments:

  • Pause the roll-out of Universal Credit
  • Pump money into health, education, and local government
  • Put money towards public sector pay rises
  • Increase funding for infrastructure projects
  • Launch a national, large-scale house-building programme

McDonnell accused Theresa May’s government of being “ill-prepared and incapable” to negotiate Brexit but failed to confirm whether a Labour government would set aside funds for a no-deal scenario.

“We believe that we should negotiate a deal and as a government, we’d negotiate a deal,” he said.

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